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| Like wildfire, cheap made-in-China mobile phones and accessories take over the Nigerian market,effectively competing against established brands
By Chikodi Okereocha
Published on: Monday 01 March 2010 , 02:25 am |
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| China-Made Phones Rule! |
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They come in various eye-catching designs, sizes, shapes, names and functionality, but one thing certain about China-made phones, popularly called Chinco in local parlance, is that they have come to stay, at least for a very long time. At major markets, particularly Computer Village and GSM Village (both in Ikeja, Lagos), including kiosks and streets across the country, made in China mobile phones and accessories are conspicuously on display, enjoying tremendous patronage and acceptance across virtually all segments of the Nigerian consumers — the old, young, rich and the low-income group.
China-made phones are also effectively challenging the dominance of the phone market by the popular and more established multinational brands such as Nokia, Sony Ericsson, Samsung, LG and Motorola. This is despite the fact that these phones, though relatively cheaper, are of low quality and less durable compared to the multinational brands. The magazine’s check revealed that most of the assorted China-made phones currently on sale in the market are imitations of the multinational brands. This means that the phones generally do not have brand names. Some of them that have are merely embossed to make them resemble the original, making it difficult for undiscerning buyers to spot the difference.
For instance, Nokla, one of the China phones in the market enjoying considerable patronage is an imitation of Nokia. There is also Dorado, Tecno, MI, among others. It certainly would take an expert in mobile devices to spot the difference between Nokia phones from China such as Nokla and the original Nokia from Finland. All the features, functionalities and aesthetics of the original and genuine Nokia N Series phones, the most commonly cloned Nokia phones, are all available in Nokia phones from China. But unlike the original Nokia phone manufactured for Nokia from industries in China or any of its factories in Finland, Germany, and Hungary, the cloned Nokia made by any of the several manufacturers operating illegally in China do not have warranty or details of its manufacture underneath the battery lid.
This perhaps, explains why the Finish phone maker has since been telling every customer who cares to listen that the only way to avoid the risk of buying inferior China-made Nokia phones in place of the original is to purchase from any of its authorised phone dealers or shops across the country where they would be given a warranty as proof of quality and durability. The company’s campaign for customers to patronise only authorised dealers and shops was borne out of the realisation that its market share in the country is under serious threat by the influx of cheap and inferior China-made phones. It was also a realisation that since the Finish phone maker has no plans, at least for now, to build factories in Nigeria; it has to contend with the steady encroachment into its market shares by China-made phones.
For instance, at various fora in Lagos, Ngozi Ife-Anene, communications manager, Nokia West Africa, had told IT reporters that the Finnish firm, known for the ruggedness of its phones, has no immediate plan to build a factory in Nigeria for the manufacture of phones and accessories. She disclosed that the mobile device giant has a total of nine factories producing phones for its markets across the globe. Although, she did not say why the company foreclosed plans to set up a factory in Nigeria despite obvious advantage of population and large market, the magazine learnt that this may not be unconnected with the harsh investment climate in the country. She, however, noted that Nokia is not about phones only as “We are also into software and services.” Nokia also provides comprehensive digital map information, equipment, solutions and services for communications networks through Nokia Siemens Networks.
Samsung, a digital media and communications, and device solutions company, is also hit by the reality that Chinese phones have come to stay. With 179 offices across 61 countries, the Korean-owned firm, known for its aesthetics, is also worried over the influx of fake and substandard Samsung phones from China into the Nigerian market. The company has therefore, been encouraging its customers to patronise only authorised retail channels. As a way of beating illegal manufacturers of its mobile phones and accessories, Samsung, at a point, resorted to coming out with new series every two years but later gave up when the numerous illegal phone manufacturers in China perfected the technology of making Samsung brands which are exact replicas but cheaper and inferior to the original Samsung from Korea. The company, like Nokia, has since been insisting that customers patronise only its authorised retail outlets across the country where they would be issued warranty.
A number of factors are responsible for the preponderance of China-made phones in the the country. One of such factors is the relative low price of the phones, which has ensured a steady stream of customers. For instance, with as low as N2,500, a customer could purchase a China-made phone, which boasts of features such as radio, MP3 and earpiece. A phone with same features from a popular brand costs as much as between N10,000 and N15,000.
Other feature-rich Chinese phones cost between N10,000 and N15,000 while those produced by Motorola, Nokia, and Sonny Ericsson cost as much as between N30,000 and N60,000. A mobile phone dealer at Computer Village, said that the jazzy ring tones of most Chinese phones and their ability to incorporate virtually all the applications that are found in most high-end phones, make them irresistible communication tools for Nigerians, particularly the youth who find them handy during social functions. He said that a number of technicians who specialise in the repair of Chinese phones are daily springing up in all the nook and cranny of major towns and cities while unemployed youth are taking advantage of the boom in the business to earn a living merely charging phones for a fee.
The phone dealer, who declined to be mentioned, noted that the fact that made in China phones are cheaper and are capable of performing the same functions found in high-end brands makes them difficult to ignore. According to him, some of the phones even come with analogue television, TV reception. That is not all. He also noted that the fact that owners of expensive phones and other mobile devices are usually targets of attack by robbers is now forcing many Nigerians to patronise cheap made in China phones, which they could easily replace in the event of loss or theft. Besides, the penchant for cheap products arising from the low purchasing power of the average Nigerian, he said, increased the rank of customers queuing for China-made phones despite the fact that the phones are not durable.
Mac Eze, vice president, Computer and Allied Products Dealers Association of Nigeria, CAPDAN, the umbrella association of dealers in the Computer Village, Ikeja, admitted the preponderance of fake and substandard products from China especially mobile phones. He, however, told the magazine that not all China-made phones were substandard as some of them met acceptable quality comparable to the notable brands. He pointed out, for instance, that Tecno had proven to be a good and durable phone despite being a Chinese product.
Eze, who is also the chief executive officer of Devine Sochiz Investments Limited, a company specialising in computer sales and maintenance, also noted that the importation of most of the cheap and substandard Chinese phones into the country was usually facilitated by unscrupulous Nigerian businessmen and importers. According to him, such unscrupulous importers and businessmen take advantage of the penchant of Nigerians for cheap products to partner the numerous illegal phone manufacturers in China to produce the phones according to specifications that do not meet acceptable standards.
The availability of cheap labour in China also made it possible for the phones to be produced in the country, imported into Nigeria through the numerous porous borders and sold to Nigerians at cheaper rates. This explains why the Nigerian market is today awash with m with made in China phones. The Asian Tiger even went a notch higher, producing phones with double SIM slots, which means that a single mobile phone could hold two SIM cards from different networks. In flooding the country with its phones, China, reputed as world’s largest and fastest-growing mobile phone market, is desperate to stamp its feet on a telecoms market believed to be the fastest growing in Africa.
The magazine learnt that initially, Pakistan, United Arab Emirates, UAE, and India were the main markets where China-made phones were exported and sold. But with the emergence of Nigeria as one of the biggest, most lucrative and competitive telecoms markets in Africa, following the liberalisation of the sector about 10 years ago, China turned its attention to Nigeria where only about 70 million of its 140 million population have so far been connected at the last count. With half of the population yet to own phones, opportunities for increased sells of its GSM and CDMA (code division multiple access) mobile phones and accessories still exist. The country, therefore, hopes to use the Nigerian market as platform to challenge the dominance of the global phone market, including Nigeria by the established brands.
China’s raw determination, however, comes at a cost. For instance, Samuel Okereafor, who patronises Chinese phones, lamented that though the phones are cheap, they are known to have a low battery lifespan. He said that the batteries of Chinese phone generally do not last long, a situation which forces its users to always carry chargers wherever they go as the phones can go flat anytime. He has lost count of the number of times he ha had to replace his phone’s battery in less than one year after purchase, adding that the low quality of China-made phones make it extremely difficult to get genuine replacement parts particularly batteries and chargers.
Environmentalists and experts have also warned of the hazardous effects of dumping electronic wastes such as Chinese phones in the country, especially given the fact that the parts and accessories of the phones are scarce, making them unserviceable. But with the aesthetics, functionality and cost effectiveness, which makes Chinese phones irresistible for the average Nigerian, Eze argues that there is nothing wrong with Standard Organisation of Nigeria and Nigerian Customs Service, having a presence in the market to inspect every container that comes in for standard.
As far as he is concerned, every product in the market ought to have been checked at the entry points to ensure they meet set standards. “Most of these products come from Asian countries, and the same Asian countries produce for America, Britain and others. That such substandard products do not find their way into America and Britain is because they check to ensure they meet acceptable standard,” he told the magazine. Whether the regulatory authorities would rise up to the challenge of checking the influx of low-quality Chinese phones into the country remains to be seen.
China-made phones
Ife-Anene: Discloses Nokia’s reluctance to build factory in Nigeria
Eze: Admits the preponderance of fake and substandard phones
Okereafor: < Scores batteries of Chinese phones low
Eze: Blames regulatory bodies for lapses Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
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